How many funds are going to be honest when marking down their pre-product investments?

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When you say “be honest” what do you mean? Funds write off early stage investments all the time to zero if it’s clear they aren’t finding product market fit. That’s expected and normal.

The real grey area is never pre-product companies, as those often have minimal capital committed. The grey area is that deal you’ve bridged twice no one is biting on with 6 months runway left. And the general norm is to avoid marking down till you have no choice unless you’re at a super late stage firm.

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Agreed. We will usually mark down only if there’s been a down round that we can’t ignore.

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